FICA Tip Credit No Longer Limited by AMT

June 21, 2007By KROST

The 2007 Small Business and Work Opportunity Act of 2007 signed by President Bush on May 25, 2007, waives the limitation on the use of the FICA Tip Credit against Alternative Minimum Tax. Many restaurant operators are aware of the federal FICA Tip Credit, a credit given to taxpayers (with tipped employees) equal to the … Read More

Increased Deductions for Food Donations through The Katrina Relief Act: A new opportunity for businesses to substantially increase charitable deductions

November 3, 2006By So Sum Lee

Publication: KROST Most restaurateurs know that inventory contributed to charity can be deducted based on the cost of the inventory. What many restaurants may not know is that new legislation allows a taxpayer to claim higher deductions closer to the actual value of the inventory. This results in increased deductions for restaurants, grocery stores, and any … Read More

Have You Received an Increase In Visa/MasterCard Charges?

August 28, 2006By KROST

Publication: KROST Well, it’s that time of the year again in which some credit card processing providers will announce that there is an increase in Visa/MasterCard rates and these rates must be passed on to you. Have you received such a notice in your February, March or April merchant statement announcing this increase for May or … Read More

IRS Announces New Tip Reporting Program

July 28, 2006By KROST

Publication: IRS Website WASHINGTON — The Internal Revenue Service today released formal guidance on its new tip reporting procedure, the Attributed Tip Income Program (ATIP) ATIP expands the existing IRS tip reporting and education program by offering employers in the food and beverage industry an additional tip reporting program. ATIP reduces industry recordkeeping burdens, has simple … Read More

Tax Credits & Other Related Tax Benefits

December 6, 2005By So Sum Lee

Publication: KROST Monthly News Release Running a business can be extremely difficult with income taxes often eating up a good portion of your profits. There are, however, numerous tax benefits available to businesses that most owners are unaware of. As a restaurant owner, you are probably aware that you have to pay social security and Medicare … Read More

The ABCs of Watching Out For Employee Theft

October 25, 2005By KROST

Publication: KROST Monthly News Release Approximately 95% of all businesses now experience some type of employee theft totaling an estimated $52 billion dollars a year. Cash-based businesses such as restaurants and bars are even more vulnerable to theft by employees. While it would be nearly impossible to eliminate employee theft and dishonesty completely, we can gain … Read More

Minimum Wage Increase Vetoed

October 4, 2005By KROST

Publication: California Restaurant Association Email AB 48, by Assembly Member Sally Lieber, was vetoed by Governor Arnold Schwarzenegger late last week. This bill would have raised California’s minimum wage by $1 and would have tied future increases to a cost of living adjustment. CRA lobbyists fought hard against AB 48 this year, just as they did … Read More

California Follows Federal Law on Partial-Day Absences

August 1, 2005By KROST

Publication: Carlton DiSante & Freudenberger LLP, Attorneys California employers may now deduct partial-day absences from an exempt employee’s accrued vacation without fear of rendering the employee non-exempt. Although partial-day deductions have been permitted under federal law for a number of years, California law had been in limbo since a 2002 opinion letter from the Division of … Read More

Smallwares Treatment Rev Proc 2002-12

June 25, 2005By KROST

1. Purpose This revenue procedure provides taxpayers engaged in the trade or business of operating a restaurant or tavern (as defined in section 4.01 of this revenue procedure) with a safe harbor method of accounting for the cost of ‘smallwares’ (as defined in section 4.02 of this revenue procedure) (‘smallwares method’). This revenue procedure also provides … Read More